Podillya's gross profit down to UAH 512 ths in 1Q09

Ukrainian agricultural company Podillya reported yesterday that its gross profit decreased to UAH 512 ths vs. UAH 7.3 mln in 1Q08. The company posted a net loss of UAH 10.6 mln in 1Q08, down from net income of UAH 167 ths one year earlier. The company attributed the loss to increased expenditures to service debt. Podillya said it paid UAH 10.6 mln in debt in 1Q09. The company said it plans to restructure almost UAH 96 mln of local bonds (put option May 29) into installments to be paid in January-May 2010. Andriy Gostik: In our view, restructuring looks like the only way for Podillya to meet its debt obligations. The company was forced to use internal reserves to finance its planting campaign this year and will only have sufficient funding after selling its products later in the year.